WSR 13-15-089 PERMANENT RULES UTILITIES AND TRANSPORTATION COMMISSION [Docket UE-112133, General Order R-571—Filed July 18, 2013, 12:27 p.m., effective August 18, 2013]
In the matter of amending and repealing rules in chapter 480-108 WAC, relating to Electric companies—Interconnection with electric generators.
I. INTRODUCTION
1 STATUTORY OR OTHER AUTHORITY: The Washington utilities and transportation commission (commission) takes this action under Notice No. WSR 13-09-054, filed with the code reviser on April 16, 2013. The commission has authority to take this action pursuant to RCW 80.01.040 and 80.04.160.
2 STATEMENT OF COMPLIANCE: This proceeding complies with the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 43.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).
3 DATE OF ADOPTION: The commission amends and adopts this rule on the date this order is entered.
4 CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: RCW 34.05.325(6) requires the commission to prepare and publish a concise explanatory statement about an adopted rule. The statement must identify the commission's reasons for adopting the rule, describe the differences between the version of the proposed rules published in the register and the rules adopted (other than editing changes), summarize the comments received regarding the proposed rule changes, and state the commission's responses to the comments reflecting the commission's consideration of them. The commission designates the discussion in this order as its concise explanatory statement.
5 The revised rules establish standards for interconnection of distributed generation facilities, including renewable energy facilities such as small solar and wind, to the electric delivery systems of electrical companies subject to commission jurisdiction. These revised rules are designed to encourage distributed generation, simplify and streamline the application process, and address technological advancements.
6 In 2006, the commission adopted chapter 480-108 WAC, establishing an application process and standards for the interconnection of distributed generation facilities to electric systems owned by electrical companies under the commission's jurisdiction.1 In response to federal and state legislation passed in 2005 and 2006, the commission amended these rules in 2007.2
7 In early 2011, at the request of the Washington state house technology, energy, and communications committee, the commission conducted a study of distributed electric generation and offered recommendations for changes in statute and rules to encourage development of cost-effective distributed generation in areas served by electrical companies.3 During the commission's study in the summer of 2011, stakeholders suggested that streamlining the interconnection application process could reduce the costs of interconnecting distributed generation facilities, and technological advances made some of the current requirements obsolete.4 As a result, the commission initiated this rule making to determine if amending the rules governing the interconnection of generation facilities was warranted.
8 REFERENCE TO AFFECTED RULES: This order amends and repeals certain sections of chapter 480-108 WAC, Electric companies—Interconnection with electric generators. The following sections are amended: WAC 480-108-001 Purpose and scope, 480-108-005 Application of rules, 480 480-108-010 Definitions, 480-108-015 Scope of Part 1, 480-108-020 Eligibility and technical requirements for Tier 1, Tier 2, and Tier 3 interconnection, 480-108-030 Application for interconnection, 480-108-040 General terms and conditions for interconnection, 480-108-050 Completion of interconnection process, 480-108-080 Interconnection service tariffs, 480-108-110 Required filings—Exceptions, 480-108-120 Cumulative effects of interconnections, and 480-108-999 Adoption by reference.
The following sections are repealed: WAC 480-108-035 Model interconnection agreement, review and acceptance of interconnection agreements and costs, 480-108-055 Dispute resolution, 480-108-060 Required filings—Exceptions, 480-108-065 Cumulative effects of interconnections with a nameplate capacity rating of 300 kW or less, 480-108-070 Scope of Part 2, and 480-108-090 Alternative interconnection service tariff.
II. HISTORY
9 PREPROPOSAL STATEMENT OF INQUIRY AND ACTIONS THEREUNDER: On December 21, 2011, the commission filed with the code reviser, at WSR 12-01-100, a preproposal statement of inquiry (CR-101) to consider revising the standards for interconnecting electric generators in the service territories of commission-regulated electrical companies in chapter 480-108 WAC. The commission opened Docket UE-112133 to commence this proceeding.
10 ADDITIONAL NOTICES AND ACTIVITIES PURSUANT TO PREPROPOSAL STATEMENT: On March 29, 2012, the commission held a workshop in this rule-making proceeding to discuss comments filed by interested persons. In joint comments, the Washington Public Utility District Association (WPUDA), the Washington Rural Electric Cooperatives Association (WRECA) and the Association of Washington Cities (AWC) proposed that interested stakeholders form a workgroup with technical staff from electric utilities, both public and private, to discuss possible rule changes. At the workshop, there was wide stakeholder support to pursue the collaborative discussions proposed by WPUDA, WRECA and AWC.
11 The commission formed a workgroup of technical representatives to recommend changes to the rule. Representatives of WPUDA, Puget Sound Energy, Inc. (PSE), Inland Power and Light Company (Inland) and the Interstate Renewable Energy Council (IREC) jointly chaired the workgroup, and other stakeholders were invited to participate. The workgroup filed a report and a draft proposed rule, termed a "model rule," with the commission on July 13, 2012. On July 26, 2012, the commission circulated a notice soliciting comments on the report and model rule. The commission received comments on the report and model rule on September 7, 2012.
12 The primary purpose of the rule making is to streamline and simplify the process of applying to interconnect distributed generation with the distribution system of commission-regulated electric companies. The model rule embraced this primary purpose. The commission issued draft rules on November 21, 2012, including most of the substantive changes the workgroup proposed. The commission received comments on its draft rules on December 21, 2012. In response to these comments, the commission issued a second set of draft rules on February 5, 2013, and received comments on March 6, 2013.
13 All comments submitted and draft rules issued by the commission are available on the commission's web site at http://www.utc.wa.gov/112133. Similarly, a summary of the comments on the draft rules filed in this docket, and the commission's response to the issues raised in the comments are available on the commission's web site.
14 NOTICE OF PROPOSED RULE MAKING: The commission filed a CR-102 notice, proposed rules, and small business economic impact statement with the code reviser on April 16, 2013, WSR 13-09-054, scheduling the matter for oral comment and providing interested persons the opportunity to submit written comments to the commission by May 17, 2013. On June 5, 2013, the commission circulated a notice of revisions to the proposed rules based on the comments received and issued a notice of opportunity to respond to certain stakeholder comments.
15 WRITTEN COMMENTS: The commission received written comments from PSE; Northwest Sustainable Energy for Economic Development (NW SEED); members of the Washington state senate energy, environment and telecommunications committee; Cascade Power Group; NW Energy Coalition (NWEC); PacifiCorp; Avista Corporation, d/b/a Avista Utilities (Avista); Renewable Northwest Project (RNP) and NW SEED, jointly; Tacoma Power; and WPUDA, WRECA, Inland, and Klickitat Public Utility District, jointly, identifying themselves as COU (consumer-owned utilities) parties. With a few exceptions, all stakeholders support the changes in the proposed rules, which streamline and simplify the process of applying to interconnect distributed generation with electric systems owned by electrical companies under the commission's jurisdiction. Summaries of all written comments and the commission's responses are contained in Appendix B, shown below, and made part of, this order.
16 RULE-MAKING HEARING: The commission considered the proposed rule for adoption at a rule-making hearing on June 13, 2013, before Chairman David W. Danner, Commissioner Jeffrey D. Goltz, and Commissioner Philip B. Jones. The commission heard oral comments from: David Meyer, representing Avista Corporation; Lou Walter, International Brotherhood of Electrical Workers, Local Union 77 (IBEW); David Warren, WPUDA; Tim Stearns, Evergreen State Solar Partnership, department of commerce (commerce); Mary Winke and Eric Anderson, PacifiCorp; Thad Culley, IREC; Michael O'Brien and Megan Decker, RNP; Lynne Dial, NWEC; Linda Irvine, NW SEED; and Lynn Logen, PSE.
17 The oral comments addressed three issues: Disconnect switches for Tier 1 systems, third-party ownership of net metering systems, and the commission's regulation of third-party owners of net metering systems. The investor-owned utility representatives also provided data concerning the level of net metering in their service territories.
III. DISCUSSION AND RESPONSE TO WRITTEN AND ORAL COMMENTS
18 Chapter 480-108 WAC requires electric utilities under commission jurisdiction to interconnect distributed generation facilities, including renewable energy such as small solar and wind, owned by a customer or located on a customer's property. Our task is to simplify and streamline the rules governing this service to advance Washington state's policies encouraging renewable energy, distributed generation, and net metering, while at the same time fulfilling our longstanding statutory obligation to ensure safe and reliable electric utility service for all customers at prices that are just and reasonable.5 With that task in mind, we turn to the comments and recommendations we received regarding the proposed rules.
19 Commenters agree on the majority of the revisions to the rules, which are focused on streamlining and simplifying the process of applying to interconnect distributed generation with the electrical system. The commenters concentrate primarily on three substantive issues: Whether the commission should (1) require an external disconnect switch for Tier 1 systems in WAC 480-108-020 (3)(a)(iv), (2) address the ownership of net metering systems in WAC 480-108-010, and (3) address the commission's jurisdiction to regulate third-party owners of net metering systems as public service companies. We address each of these issues in detail below. In addition to these issues, commenters also raised several other issues for clarification and requested minor technical changes. A detailed summary of the comments and the commission's response to the issues raised in those comments is provided in Appendix B.
1. External disconnect switches are not required by the commission for Tier 1 inverter-based systems.
20 Utilities have traditionally required all generating facilities to have an external disconnect switch in order to protect worker safety. Line workers occasionally must come in close contact with an electric line. To prevent injury, line workers disconnect the line from the utility's grid, including the utility's generating stations. The customer's generating facility must also be disconnected. An external disconnect switch provides a physical switch that a line worker can turn to ensure that the customer's generating facility is not exporting power to the line.
21 Proposed WAC 480-108-040(20) requires any inverter used for interconnection to "be certified by an independent, nationally recognized testing laboratory to meet the requirements of [Underwriters Laboratories] 1741."6 The Underwriters Laboratories standard requires that an inverter automatically shut off and stop the export of power when no other source of power is connected to the utility's grid.7 Accordingly, after the worker disconnects the line from the utility's grid, the inverter will detect that no other source of power is present and automatically prevent the export of power. Thus, inverters that meet the Underwriters Laboratories standard automatically perform the same function as a disconnect switch.
22 NW SEED commented that requiring a disconnect switch is obsolete and unnecessary.8 Cascade Power Group said that the disconnect switch requirement is an appropriate issue for the Washington state department of labor and industries to address.9 Mr. Stearns of commerce commented at the hearing that streamlining and standardizing interconnection practices is important to the development of distributed solar resources and that addressing line worker safety may be an issue of training rather than requiring disconnect switches.10
23 In written comments, Avista and the COU parties suggested that an external disconnect switch should be required unless the utility agrees otherwise.11 In oral comments at the rule-making hearing, Avista clarified its position to mean the commission should not require a disconnect switch for Tier 1 systems.12 At the hearing, Mr. Warren of WPUDA reiterated the comments of the COU parties, recommending that the language be changed to allow utilities to waive the requirement for Tier 1 systems.13
24 In written comments, PSE stated it "is not opposed to eliminating the requirement for a disconnect switch," but noted that the elimination of the disconnect switch requirement "will likely impact PSE's service restoration guarantee and its Service Quality Indices."14 PSE said that it will address the impact of not installing a disconnect switch in its tariff.15
25 At the hearing, Mr. Walter of IBEW stated that to protect worker safety a disconnect switch should be required.16 IBEW argued that relying on an inverter (a new computer technology) to disconnect a generating facility is not sufficient to guarantee safety.17
26 The proposed rule language in WAC 480-108-020 (2)(a)(iv) prohibits electrical companies from requiring a visible, lockable alternating current disconnect switch for small inverter-based systems, unless the Washington state department of labor and industries (LNI) requires a switch. The record in this docket, and our previous investigation into distributed generation, does not persuade us that worker safety requires a redundant disconnect switch on small inverter-based systems.18 However, we defer in the rule to LNI, an agency dedicated to the safety, health and security of workers. LNI may determine that such a switch is required. In the absence of such a determination, a utility may not require a redundant disconnect switch for small inverter-based systems.
27 WAC 480-108-020 (2)(b)(ix), requires a disconnect switch for larger systems that qualify for Tier 2 procedures, but allows the utility to waive this requirement for inverter-based systems. The commission inadvertently removed any reference to a Tier 2 disconnect switch in the proposed rules circulated with the CR-102 notice on April 17, 2013. Accordingly, we will restore the provision in WAC 480-108-BBB (2)(b)(ix) from the February 5, 2013, draft, but modify the language so as not to require a specific placement of the switch. A utility may specify the placement of the switch in its interconnection agreement or tariff. This language is included in paragraph 48 of this order.
2. The third-party ownership of net metering systems is permissible under RCW 80.60.010.
28 Net metering is a program that "encourage[s] private investment in renewable energy resources" by allowing electric utilities to provide a bill credit for certain types of power produced on a customer's property.19 Power produced from a small fuel cell, cogeneration, or renewable energy system qualifies for the program, which is most commonly used by homeowners who install rooftop solar panels.20 The homeowner is often called the "host customer" or "customer-generator" because she hosts the power generating system, and we adopt this terminology for use in this order. The question presented in this rule making is whether a host customer must own the power generating facility located on her property in order to qualify for the net metering program, or whether a third party may own the facility. We first examine this question and then respond to several specific concerns regarding our resolution of this issue.
29 NWEC, RNP, and NW SEED argue in written and oral comments that third-party ownership is permissible under the state's net metering statute and express support for the definitions of "interconnection customer" and "third-party owner" in the proposed rule.21 Mr. Culley of IREC recommends the commission clarify that third-party ownership is allowed under the net metering statutes.22 Mr. Stearns of commerce states that the commission's proposed rules would promote clarity in the law.23
30 In written comments, PacifiCorp suggests that third-party ownership is not authorized by, and may not be legal under, Washington law.24 Avista originally commented that the legislative process is the best setting for resolving this question,25 but at the rule-making hearing recommended that the commission address the issue of third-party ownership in the rule making and expressed support for the definitions of "interconnection customer" and "third-party owner" in the proposed rules.
31 The COU parties requested the commission remove all references to third-party ownership, launch an investigation into the issue, and open a new docket for net metering rules.26 Alternatively, the COU parties requested that this rule making include an investigation into the issue of third-party ownership.27 During the rule-making hearing, Mr. Warren repeated the concerns expressed in written comments, opposing the interpretation of "interconnection customer" in the proposed rules and arguing that by allowing third-party owners, the proposed rule would expand the meaning of "customer-generator" in the net metering statute to include both a host customer and a generator.28
32 Our review of Washington's net metering statutes, as currently enacted, leads us to conclude they allow third parties to own net metering systems. The statute provides two definitions that guide our interpretation of the net metering program's requirements. First, RCW 80.60.010 defines the types of power-generating facilities that qualify for the program:
"Net metering system" means a fuel cell, a facility that produces electricity and used and useful thermal energy from a common fuel source, or a facility for the production of electrical energy that generates renewable energy, and that:
(a) Has an electrical generating capacity of not more than one hundred kilowatts;
(b) Is located on the customer-generator's premises;
(c) Operates in parallel with the electric utility's transmission and distribution facilities; and
(d) Is intended primarily to offset part or all of the customer-generator's requirements for electricity.29
33 This provision only specifies certain requirements, including the type, size, location, and use of a net metering system. The law requires that the system be located on the customer-generator's property, but does not require the system be owned by the customer-generator.
34 Second, the statute requires an electric utility to "offer to make net metering available to eligible customers-generators."30 "Customer-generator" is further defined as "a user of a net metering system."31 The meaning of "user" is not synonymous with the meaning of "owner," suggesting that a customer can "use" a system owned by a third party. Similar to the definition of net metering system discussed above, there is no requirement in statute that a customer-generator own the net metering system.
35 Additionally, RCW 80.60.010 uses the term "owned" or "owned by" three times in other definitions, indicating that as a matter of statutory construction the legislature appreciated the difference between the concepts of ownership and use when drafting the definitions of "customer-generator" and "net metering system."32 Therefore, we interpret the statutes to mean that the net metering program, as defined in chapter 80.60 RCW, is open to a customer-generator using a net metering system owned by a third party.
36 Several commenters ask the commission to delay this rule making to investigate further the commission's authority to allow third-party ownership. We decline to do so. RCW 80.60.040(2) allows the commission to "adopt by regulation additional safety, power quality, and interconnection requirements for customer-generators." We embrace our responsibility under the net metering statute and the Administrative Procedure Act, chapter 34.05 RCW, to clarify through rule the meaning of laws we have the authority to administer. Accordingly, this rule addresses net metering in several places and has since the rule was first adopted in 2006. As there are no separate net metering rules, the interconnection rules are an appropriate place to address the third-party ownership of net metering systems.
37 Further, there is no reason to delay this rule making to conduct further inquiry into the issue of whether third parties may own net metering systems. Beginning in Docket UE-110667, the commission since 2011, has closely examined the question of third-party ownership. The commission received extensive comments on the issue in the distributed generation docket, resulting in the distributed generation report, and in this docket leading up to this rule. A complete record on this question of third-party ownership, including multiple rounds of comments, is available in this docket.33 While some issues remain related to the third-party ownership of net metering systems, the definitions in the proposed rules address only whether third-party ownership is allowed under the current statute. Further investigation is unlikely to raise any new issues or arguments related to this narrow issue.34
38 Finally, we address other concerns raised by commenters. Cascade Power Group and PSE raised concerns about the rule's definition of "third-party owner." Cascade Power Group disagrees with the definition of "third-party owner," preferring that it participate in a business relationship with the utility.35 Cascade Power Group also asks that the definition make clear that a third-party owner is allowed to resell electricity produced from a net metering facility.36
39 We decline to make any changes along the lines suggested by Cascade Power Group because the resale of power may implicate federal jurisdiction. One purpose of this rule is to interpret chapter 80.60 RCW to clarify that a third-party owner may legally provide power to a host customer on whose property a net metering system is located. The host customer may export power to the grid pursuant to a legal net metering arrangement.37 The definition of third-party owner in the proposed rule, as modified in paragraph 47 below, excludes a person who resells power produced by the net metering system to a person who is not the customer-generator.
40 In written and oral comments, PSE noted that the definition of "interconnection customer" allows a customer to purchase power from a third-party owner, and the definition of "third-party owner" may be in conflict with this provision by prohibiting a utility from allowing a third-party owner to resell electricity produced from a net metering system.38 PSE recommended the commission delete the last sentence of the definition of "third-party owner" to eliminate this potential conflict.39
41 The commission does not believe there is a conflict between the two definitions, as a third-party owner is selling, not reselling, power to a customer-generator. Nevertheless, one purpose of these rules is to eliminate ambiguity in the interpretation of the state's net metering statutes. So while we believe there is no conflict between the definitions, we modify the last sentence of the definition of "third party owner" to read: "A third-party owner does not resell the electricity produced from a net metered generating facility." We identify this language change below in paragraph 47. By making this modification, we exclude from the definition of "third-party owner" one who resells electricity produced from a net metering system. This rule does not authorize a customer-generator to accept power from a person who resells electricity, or provide power to a person who is not the incumbent electrical company.
42 In sum [summary], the plain language of the statute allows a third party to own a net metering system, the commission has the authority to interpret the statute through this rule, and the definitions in the rule are carefully crafted to comply with the law.
3. Commission jurisdiction to regulate third-party owners as "public service companies."
43 In written comments, RNP and NW SEED, jointly, and NW Energy Coalition urged the commission to signal in this order that a third-party owner, in factual circumstances described in the comments, would not be subject to regulation as a public service company.40 The COU parties recommended that the commission regulate third-party owners of net metering systems.41 After receiving these comments, the commission issued a notice requesting further discussion of this issue at its rule adoption hearing on June 13, 2013. At the hearing, David Warren, representing WPUDA, repeated the COU parties' arguments that the commission to [too] should regulate third-party owners of net metering systems.42 David Meyer for Avista Corporation, Thad Culley for IREC, and Michael O'Brien and Megan Decker for RNP, asked the commission to use its adoption order to clarify that third-party owners are not subject to commission jurisdiction.43
44 We are authorized and encouraged under RCW 34.05.230(1) to advise the public of our "current opinions, approaches and likely courses of action by means of interpretive or policy statements." We construe the joint request by RNP and NW SEED as one to issue an interpretive statement on this issue, and we grant this request. We will issue an interpretive statement on this issue in a separate order.
IV. COMMISSION ACTION
45 After considering all of the information and comments regarding this proposal, the commission finds and concludes that it should repeal and amend the rules as proposed in the CR-102 at WSR 13-09-054, subject to the modifications discussed in this order.
46 CHANGES FROM PROPOSAL: After reviewing the entire record, the commission adopts the CR-102 proposal with the minor changes from the text noticed at WSR 13-09-054. We adopt the rule as presented below, with the minor changes italicized. These changes clarify the meaning of the rule and respond to comments, as discussed above and in Appendix B.
47 For clarity in the rule and pursuant to comments received, the commission removes the definitions of "Grid network distribution system," "In-service date," "Model interconnection agreement," "PURPA qualifying facility," and "Spot network distribution system," which are not used in the chapter, and modifies the following definitions in WAC 480-108-010:
"Interconnection customer" means the person, corporation, partnership, government agency, or other entity that proposes to interconnect, or has executed an interconnection agreement with the electrical company. The interconnection customer must:
(a) Own a generating facility interconnected to the electric system;
(b) Be a customer-generator of net-metered facilities, as defined in RCW 80.60.010(2); or
(c) Otherwise be authorized to interconnect by law.
The interconnection customer is responsible for the generating facility, and may assign to another party responsibility for compliance with the requirements of this rule only with the express written permission of the electrical company. A net metered interconnection customer may lease a generating facility from, or purchase power from, a third-party owner of an on-site generating facility.
"Net metering," as defined in RCW 80.60.010, means measuring the difference between the electricity supplied by an electrical company and the electricity generated by a generating facility that is fed back to the electrical company over the applicable billing period.
"Network protectors" means devices installed on a spot network distribution system designed to detect and interrupt reverse current-flow (flow out of the network) as quickly as possible, typically within three to six cycles.
"Point of common coupling" or "PCC" means the point where the generating facility's local electric power system connects to the electric system, such as the electric power revenue meter or at the location of the equipment designated to interrupt, separate or disconnect the connection between the generating facility and electrical company. The point of common coupling is the point of measurement for the application of Institute of Electrical and Electronics Engineers standard (IEEE) 1547.
"Third-party owner" means an entity that owns a generating facility located on the premises of an interconnection customer and has entered into a contract with the interconnection customer for provision of power from the generating facility. When a third-party owns a net-metered generating facility, the interconnection customer maintains the net metering relationship with the electrical company. A third-party owner does not resell the electricity produced from a net metered generating facility.
48 Throughout this rule making, the commission intended to require a disconnect switch for larger systems that qualify for Tier 2 procedures but allow the utility to waive this requirement for inverter-based systems. The commission inadvertently removed this reference to a Tier 2 disconnect switch in the proposed rules noticed on April 17, 2013. For this reason, and for additional clarifications, the proposed WAC 480-108-020 is modified as follows:
(1) Applicability. (a) Tier 1. Interconnection of a generating facility will use Tier 1 processes and technical requirements if the proposed generating facility meets all of the following criteria:
* * *
(2) Technical requirements.* * * (b) Tier 2. * * *
(ix) Disconnect switch.
(A) Except as provided in subsections B, C, and D of this subsection, the generating facility must include a visible, lockable AC disconnect switch. The electrical company shall have the right to disconnect the generating facility at a UL listed disconnect switch to meet electrical company operating safety requirements.
(B) An electrical company may waive the visible, lockable disconnect switch requirement for an inverter-based system.
(C) To maintain electrical company operating and personnel safety in the absence of an external disconnect switch, the interconnection customer shall agree that the electrical company has the right to disconnect electric service through other means if the generating facility must be physically disconnected for any reason, without liability to the electrical company. These actions to disconnect the generating facility (due to an emergency or maintenance or other condition on the electric system) will result in loss of electrical service to the customer's facility or residence for the duration of time that work is actively in progress. The duration of outage may be longer than it would otherwise have been with an AC disconnect switch.
(D) In the absence of an external disconnect switch, the interconnection customer is required to operate and maintain the inverter in accordance with the manufacturer's guidelines, and retain documentation of commissioning. In the absence of such documentation the electric company may, with 5 days' notice and at the interconnection customer's expense, test or cause to be tested the inverter to ensure its continued operation and protection capability. The person that tests the inverter shall provide documentation of the results to both the electrical company and the interconnection customer. Should the inverter fail the test, the electric company may disconnect the generating facility, and require the interconnection customer to repair or replace the inverter. The cost of any such repair or replacement required by the electric company shall be the sole responsibility of the interconnection customer.
49 For clarification and to correct an inadvertent error, the commission modifies the proposed WAC 480-108-030 as follows:
(8)(b)(iv) Initial operation. An interconnection customer must interconnect and operate the generating facility within one year from the date of approval of the application, or the application expires, unless the electrical company, in its sole discretion, grants an extension in writing.
(9) Tier 2 application timeline.
(a) Notice of receipt. Notice of receipt of an application and application fee shall be sent by the electrical company to the interconnection customer within five business days.
(b) Notice of complete application. (i) The electrical company shall notify the interconnection customer if the application is complete or incomplete, and if incomplete specifying any deficiencies, within ten business days after notice of receipt of application.
* * *
(e) Initial operation. An interconnection customer must interconnect and operate the generating facility within one year from the date of approval of the application, or the application expires, unless the electrical company, in its sole discretion, grants an extension in writing.
(10) Tier 3 application timeline.
* * *
(e) An interconnection customer must execute an interconnection agreement, and simultaneously pay any deposit required by the electrical company not to exceed fifty percent of the estimated costs to complete the interconnection, within thirty business days from the date of approval of the final application. At the electrical company's discretion, an extension may be granted in writing. If the electrical company must upgrade or construct new electric system facilities, the interconnection customer must meet the credit requirements of the electric company prior to the start of construction.
(f) Initial operation. An interconnection customer must begin operation of the generating facility within two years of the effective date of the interconnection agreement, or both the application and subsequent interconnection agreement expire. At the electrical company's discretion, an extension may be granted in writing.
50 For clarification and to maintain consistency with the previously enacted rule, the commission modifies proposed WAC 480-108-040(16) as follows:
Chapter 80.60 RCW limits the total capacity of generation for net metering. However, the electrical company may restrict or prohibit new or expanded net metered systems on any feeder, circuit or network if engineering, safety, or reliability studies establish the need for a restriction or prohibition.
51 The commission modifies, for clarification, proposed WAC 480-108-080(5) as follows:
Tier 3 alternative interconnection service tariff. If an electrical company demonstrates that the small generator interconnection provisions will impair service adequacy, reliability or safety or will otherwise be incompatible with its electric system, the electrical company may file a Tier 3 alternative interconnection service tariff. An alternative interconnection service tariff must meet the following requirements and be consistent with all provisions of this chapter:
* * *
52 STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: After reviewing the entire record, the commission determines that WAC 480-108-001, 480-108-005, 480-108-010, 480-108-015, 480-108-020, 480-108-030, 480-108-040, 480-108-050, 480-108-080, 480-108-110, 480-108-120, and 480-108-999 should be amended to read as set forth in Appendix A, as rules of the commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the Code Reviser.
53 After reviewing the entire record, the commission determines that WAC 480-108-035, 480-108-055, 480-108-060, 480-108-065, 480-108-070, and 480-108-090 should be repealed as rules of the commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 12, Repealed 6.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 12, Repealed 6.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
V. ORDER
THE COMMISSION ORDERS:
54 (1) The commission amends WAC 480-108-001, 480-108-005, 480-108-010, 480-108-015, 480-108-020, 480-108-030, 480-108-040, 480-108-050, 480-108-080, 480-108-110, 480-108-120, and 480-108-999 to read as set forth in Appendix A, as rules of the Washington utilities and transportation commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.
55 (2) The commission repeals WAC 480-108-035, 480-108-055, 480-108-060, 480-108-065, 480-108-070, and 480-108-090 as rules of the Washington utilities and transportation commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.
56 (3) This order and the rule set out below, after being recorded in the order register of the Washington utilities and transportation commission, shall be forwarded to the code reviser for filing pursuant to chapters 80.01 and 34.05 RCW and 1-21 WAC.
DATED at Olympia, Washington, July 18, 2013.
WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
David W. Danner, Chairman
Philip B. Jones, Commissioner
Jeffrey D. Goltz, Commissioner
Appendix A
Chapter 480-108 WAC Amended Rules
Appendix B
May 17, 2013, Comment Summary and Commission Response
Interconnection Rule Making
Docket UE-112133
Comment Summary - May 17, 2013
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-001 Purpose and scope.
(1) ((The purpose of)) This chapter ((is two-fold: (a) Part 1 of this chapter)) establishes rules for: (a) Determining the charges, terms and conditions governing the interconnection of customer-owned electric generating facilities with a nameplate generating capacity of no more than ((300 kilowatts (kW))) 20 megawatts (MW) to the electric system of an electrical company over which the commission has jurisdiction. (b) ((Part 2 of this chapter establishes rules)) Requiring each electrical company to file interconnection service tariffs for interconnection of some electric generating facilities ((with a nameplate generating capacity greater than 300 kW but no more than 20 megawatts (MW))) to the electric system of an electrical company over which the commission has jurisdiction. The terms and conditions in such interconnection service tariffs must be either equivalent in all procedural and technical respects with the electrical company's interconnection service offered under its open access transmission tariff approved by the Federal Energy Regulatory Commission, or they must ((comply with a specified set of requirements set out in WAC 480-108-090)) be consistent with this chapter. (2) These rules are intended: (a) To be consistent with the requirements of chapter 80.60 RCW, Net metering of electricity; (b) To comply with Section 1254 of the Energy Policy Act of 2005, Pub. L. No. 109-58 (2005) that amended section 111(d) of the Public Utility Regulatory Policy Act (PURPA) relating to Net Metering (subsection 11) and Interconnection (subsection 15)((; and (c) To promote the purposes of RCW 82.16.120 (effective July 1, 2005))). (3) This chapter governs the terms and conditions under which an interconnection customer's generating facility, including without limitation net-metered facilities, will interconnect with, and operate in parallel with, the ((electrical company's)) electric system. This chapter does not govern the settlement, purchase or delivery of any power generated by an interconnection customer's net-metered or production-metered generating facility. (4) This chapter does not govern interconnection of, or electrical company services to, PURPA qualifying facilities pursuant to chapter 480-107 WAC. (5) This chapter does not govern standby generators designed and used only to provide power to the customer when ((the local electric distribution)) electrical company service is interrupted and that operate in parallel with the electric ((distribution company)) system for less than 0.5 seconds both to and from emergency service. (6) The specifications and requirements in these rules are intended to mitigate possible adverse impacts caused by a generating facility on electrical company equipment and personnel and on other customers of the electrical company. They are not intended to address protection of the interconnection customer's generating facility, facility personnel, or internal load. It is the responsibility of the interconnection customer to comply with the requirements of all appropriate standards, codes, statutes and authorities to protect its own facilities, personnel, and loads.
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-005 Application of rules.
(1) ((The rules in)) This chapter ((apply)) applies to any electrical company ((that is)) subject to commission jurisdiction under RCW 80.04.010 and chapter 80.28 RCW. ((These rules)) This chapter also ((include various)) includes eligibility and other requirements applicable to existing or potential interconnection customers. (2) This chapter governs interconnections subject to the jurisdiction of the commission and does not govern interconnections subject to the jurisdiction of the Federal Energy Regulatory Commission. (3) The tariff provisions filed by electrical companies must conform to these rules. If the commission accepts a tariff that conflicts with these rules, the acceptance does not constitute a waiver of these rules unless the commission specifically approves the variation consistent with WAC 480-100-008. (4) Electrical companies shall modify existing tariffs, if necessary, to conform to these rules. This includes, but is not limited to, tariffs implementing chapter 80.60 RCW, Net metering of electricity. (5) Disputes that arise under this chapter will be addressed in accordance with chapter 480-07 WAC. Any existing or potential interconnection customer may ask the commission to review the interpretation or application of these rules by an electrical company by making an informal complaint under WAC 480-07-910, Informal complaints, or by filing a formal complaint under WAC 480-07-370, Pleadings—General.
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-010 Definitions.
"Application" means the written notice as defined in WAC 480-108-030 that the interconnection customer provides to the electrical company to ((initiate)) start the interconnection process. "Business day" means Monday through Friday excluding official federal and state holidays. "Certificate of completion" means the form described in WAC 480-108-050(2) that must be completed by the interconnection ((customer and the)) customer's electrical inspector ((having jurisdiction over the installation of the facilities)) and approved by the electrical company indicating completion of installation and inspection of the interconnection. ((As provided in WAC 480-108-050, the certificate of completion must be reviewed and approved, in writing, by the electrical company before the interconnection customer's generation facility may be connected and operated in parallel with the electrical company's electrical system.)) "Commission" means the Washington utilities and transportation commission. "Electric system" means all electrical wires, equipment, and other facilities owned by the electrical company ((that are)) used to transmit electricity to customers. "Electrical company" means any public service company, as defined by RCW 80.04.010, engaged in the generation, distribution, sale or furnishing of electricity and subject to the jurisdiction of the commission. "Generating facility" means a source of electricity owned, or whose electrical output is owned, by the interconnection customer that is located on the interconnection customer's side of the point of common coupling, and all ancillary and appurtenant facilities, including interconnection facilities, which the interconnection customer requests to interconnect to the ((electrical company's)) electric system. ((["]Grid network distribution system" means electrical service from a distribution system consisting of two or more primary circuits from one or more substations or transmission supply points arranged such that they collectively feed secondary circuits serving more than one location and more than one electrical company customer. "Interconnection customer" means the person, corporation, partnership, government agency, or other entity that owns and operates a generating facility interconnected or requested to be interconnected to the electrical company's electric system. The interconnection customer may assign to another party responsibility for compliance with the requirements of this rule only with the express written permission of the electrical company.)) "Initial operation" means the first time the generating facility ((is)) operates in parallel ((operation)) with the electric system. (("In-service date" means the date on which the generating facility and any related facilities are complete and ready for service, even if the generating facility is not placed in service on or by that date.)) "Interconnection" means the physical connection of a generating facility to the electric system so that parallel operation may occur. "Interconnection agreement" means an agreement between an electrical company and the interconnection customer which outlines the interconnection requirements, costs and billing agreements, insurance requirements, and ongoing inspection, maintenance, and operational requirements. "Interconnection customer" means the person, corporation, partnership, government agency, or other entity that proposes to interconnect, or has executed an interconnection agreement with the electrical company. The interconnection customer must: (a) Own a generating facility interconnected to the electric system; (b) Be a customer-generator of net-metered facilities, as defined in RCW 80.60.010(2); or (c) Otherwise be authorized to interconnect by law. The interconnection customer is responsible for the generating facility, and may assign to another party responsibility for compliance with the requirements of this rule only with the express written permission of the electrical company. A net metered interconnection customer may lease a generating facility from, or purchase power from, a third-party owner of an on-site generating facility. "Interconnection facilities" means the electrical wires, switches and other equipment owned by the electrical company or the interconnection customer and used to interconnect a generating facility to the electric system. Interconnection facilities are located between the generating facility and the point of common coupling. Interconnection facilities do not include system upgrades. (("Model interconnection agreement" means a written agreement including standardized terms and conditions that govern the interconnection of generating facilities pursuant to this chapter. The model interconnection agreement may be modified to accommodate terms and conditions specific to individual interconnections, subject to the conditions set forth in these rules.)) "Islanding" means the condition that occurs when power from the electric system is no longer present and the generating facility continues exporting energy onto the electric system. "Minor modification" means a physical modification to the electric system with a cost of no more than ten thousand dollars. "Nameplate capacity" means the manufacturer's output capacity of the generating facility. For a system that uses an inverter to change DC energy supplied to an AC quantity, the nameplate capacity will be the manufacturer's AC output rating for the inverter(s). Nameplate capacities shall be measured in the unit of kilowatts. "Net metering," as defined in RCW 80.60.010, means measuring the difference between the electricity supplied by an electrical company and the electricity generated by a generating facility that is fed back to the electrical company over the applicable billing period. "Network protectors" means devices installed on a ((spot)) network distribution system designed to detect and interrupt reverse current-flow (flow out of the network) as quickly as possible, typically within three to six cycles. "Parallel operation" or "operate in parallel" means the synchronous operation of a generating facility while interconnected with an ((electrical company's)) electric system. "Point of common coupling" ((or "PCC")) means the point where the generating facility's local electric power system connects to the ((electrical company's)) electric system, such as the electric power revenue meter or at the location of the equipment designated to interrupt, separate or disconnect the connection between the generating facility and electrical company. The point of common coupling is the point of measurement for the application of ((IEEE 1547, clause 4)) Institute of Electrical and Electronics Engineers standard (IEEE) 1547. (("PURPA qualifying facility" means a generating facility that meets the criteria specified by the Federal Energy Regulatory Commission (FERC) in 18 C.F.R. Part 292 Subpart B and that sells power to an electrical company under chapter 480-107 WAC. "Spot network distribution system" means electrical service from a distribution system consisting of two or more primary circuits from one or more substations or transmission supply points arranged such that they collectively feed a secondary circuit serving a single location (e.g., a large facility or campus) containing one or more electrical company customers.)) "System upgrades" means the additions, modifications and upgrades to the ((electrical company's electrical)) electric system at or beyond the point of common coupling necessary to ((facilitate the interconnection of)) interconnect the generating facility. System upgrades do not include interconnection facilities. "Third-party owner" means an entity that owns a generating facility located on the premises of an interconnection customer and has entered into a contract with the interconnection customer for provision of power from the generating facility. When a third-party owns a net-metered generating facility, the interconnection customer maintains the net metering relationship with the electrical company. A third-party owner does not resell electricity produced from a net metered generating facility.
PART 1: INTERCONNECTION OF GENERATION FACILITIES ((WITH NAMEPLATE CAPACITY RATING OF 300 KW OR LESS)) UNDER TIER 1, TIER 2, OR TIER 3 PROCEDURES
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-015 Scope of Part 1.
(1) The provisions in Part 1 of this chapter apply to interconnections, and to applications to interconnect, ((customer-owned)) generating facilities with a nameplate capacity ((rating)) of ((300 kW)) 20 MW or less to an ((electrical company's electrical)) electric system under this chapter. Interconnections fall within three categories - Tier 1, 2, and 3, which differ by capacity and complexity. This section defines the applicability and technical standards for these interconnection categories. (2) This chapter facilitates the interconnection process for both the interconnection customer and the electrical company by classifying interconnections based on shared characteristics. As smaller facilities with appropriate interconnection technologies are expected to have a much lower impact on the electric system, expedited processes and standardized interconnection requirements are allowed for these interconnections. Larger generating facilities using different generating and interconnection technologies can have significant impacts on the electric system, such that more in-depth review is required and additional technical requirements may apply. (3) Tiers 1, 2, and 3 listed below contain initial applicability tests that determine which tier process an interconnection customer and electrical company will use, along with process descriptions, technical requirements and completion criteria for each tier. Tier 3 facilities include a set of alternative service tariffs and other requirements. Additionally, all facilities must meet the appropriate requirements of this chapter, and the rules and standards adopted by reference in WAC 480-108-999.
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-020 Eligibility and technical ((standards for)) requirements for Tier 1, Tier 2, and Tier 3 interconnection.
(((1) General interconnection requirements. (a) The interconnection of a generating facility with the electrical company's electric system, the modification of a generating facility that is currently interconnected to the electrical company's electric system, or the modification of an existing interconnection must meet all minimum technical specifications applicable, in their most current approved version, as set forth in WAC 480-108-999. (b) Interconnection of a generation facility with a nameplate capacity rating of 300 kW or less must comply with all applicable requirements in Table 1. Table 1. 300 kW Capacity or Less.
(c) Any single or aggregated generating facility with a capacity greater than 50 kW requires a three-phase interconnection. (d) The specification and requirements in this section are intended to mitigate possible adverse impacts caused by the generating facility on electrical company equipment and personnel and on other customers of the electrical company. The specifications and requirements in this section are not intended to address protection of the generating facility or its internal load, or generating facility personnel. The interconnection customer is responsible for complying with the requirements of all appropriate standards, codes, statutes, and authorities to protect its own facilities, personnel, and loads. (e) The specifications and requirements in this section apply generally to the interconnection to an electrical company's electric system of customer-owned and operated electric equipment and any other facilities or equipment not owned by the electrical company to which interconnection agreement(s) apply throughout the period encompassing the interconnection customer's installation, testing and commissioning, operation, maintenance, decommissioning and removal of equipment. The electrical company may verify compliance at any time, with reasonable notice. (f) The electrical company may refuse to establish or maintain interconnection with any interconnection customer that fails to comply with the requirements in (f)(i), (ii) and (iii) of this subsection. However, at its sole discretion, the electrical company may approve alternatives that satisfy the intent of, and/or may excuse compliance with, any specific elements of these requirements except local, state and federal building codes. (i) Code and standards. All interconnections must conform to all applicable codes and standards for safe and reliable operation. Among these are the National Electric Code (NEC); National Electric Safety Code (NESC); the standards of the Institute of Electrical and Electronics Engineers (IEEE); the standards of the North American Electric Reliability Corporation (NERC); the standards of the Western Electricity Coordinating Council (WECC); American National Standards Institute (ANSI); Underwriters Laboratories (UL) standards; local, state and federal building codes, and any electrical company's written electric service requirement approved by the commission. Electrical companies may require verification that an interconnection customer has obtained all applicable permit(s) for the equipment installations on its property. (ii) Safety. All safety and operating procedures for interconnection facilities must comply with the Occupational Safety and Health Administration (OSHA) Standard at 29 C.F.R. 1910.269, the NEC, Washington Administrative Code (WAC) rules, the Washington Industrial Safety and Health Administration (WISHA) Standard, and equipment manufacturer's safety and operating manuals. (iii) Power quality. Installations must be in compliance with all applicable standards including, without limitation, IEEE Standard 519 Harmonic Limits, and IEEE Standard 141 Flicker as measured at the PCC. (2) Specific interconnection requirements. (a) The electrical company must verify that the interconnection customer has furnished and installed on its side of the meter, a UL-approved safety disconnect switch that can fully disconnect the interconnection customer's generating facility from the electrical company's electric system. The disconnect switch must be located adjacent to electrical company meters and shall be of the visible break type in a metal enclosure that can be secured by a padlock. The disconnect switch must be accessible to electrical company personnel at all times. (b) The requirement in (a) of this subsection may be waived by the electrical company if the interconnection customer: (i) Provides interconnection facilities that the interconnection customer can demonstrate, to the satisfaction of electrical company, perform physical disconnection of the generating equipment supply internally; and (ii) Agrees that its service may be disconnected entirely if generating equipment must be physically disconnected for any reason. Such waiver granted by the electrical company to the interconnection customer must be explicit and in writing. (c) The electrical company has the right to disconnect the generating facility at the disconnect switch: (i) When necessary to maintain safe electrical operating conditions; (ii) If the generating facility does not meet required standards; or (iii) If the generating facility at any time adversely affects or endangers any person, the property of any person, the electrical company's operation of its electric system or the quality of electrical company's service to other customers. (d) Nominal voltage and phase configuration of interconnection customer's generating facility must be compatible with the electrical company's system within generally accepted engineering standards including without limitation IEEE Standards 141 and 519 at the point of common coupling. (e) The electrical company must verify on the basis of evidence provided by the interconnection customer that a generating facility interconnected to a grid network distribution system or a spot network distribution system will not impair public safety or quality of service to the electrical company's other customers as a result of reverse current flow through the electrical company's network protectors. (f) All instances of interconnection to spot network distribution systems require review, studies as necessary, and written approval by the electrical company. (g) All instances of interconnection to grid network distribution systems require review, studies as necessary, and written approval by the electrical company. (h) Closed transition transfer switches are not allowed in network distribution systems. (3) Specifications applicable to all inverter-based interconnections. In addition to the requirements contained in subsections (1) and (2) of this section, the interconnection of any inverter-based generating facility with the electrical company's electric system, or the modification of an existing interconnection with an inverter-based generating facility must meet the following additional technical specifications, in their most current approved version: (a) IEEE Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems; (b) UL Standard 1741, Inverters, Converters, and Controllers for Use in Independent Power Systems. Equipment must be UL listed; and (c) IEEE Standard 929, IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems. (4) In addition to the requirements in subsections (2) and (3) of this section, all noninverter-based interconnections and all inverter-based interconnections failing to meet the requirements of subsection (3) of this section may require more detailed electrical company review. The electrical company must demonstrate the need for additional testing and approval of equipment if the same equipment has been tested and approved previously for any of the electrical company's interconnection customers. Electrical companies may require interconnection customers to pay for needed testing and approval of the equipment proposed to be installed to ensure compliance with applicable technical specifications, in their most current approved version, including: (a) IEEE Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems, for systems 10 MVA or less; and (b) ANSI Standard C37.90, IEEE Standard for Relays and Relay Systems Associated with Electric Power Apparatus. (5) The electric company may require interconnection customers proposing noninverter-based interconnection to submit a power factor mitigation plan for electrical company review and approval.)) (1) Applicability. (a) Tier 1. Interconnection of a generating facility will use Tier 1 processes and technical requirements if the proposed generating facility meets all of the following criteria: (i) Uses inverter-based interconnection equipment; (ii) Is single phase; (iii) Has a nameplate capacity of 25 kW or less; (iv) Is proposed for interconnection at secondary voltages (600 V class); (v) Requires no construction or upgrades to electrical company facilities, other than meter changes; (vi) The aggregated generating capacity on the service wire does not exceed the service wire capability; (vii) The aggregated generating capacity on the transformer secondary does not exceed the nameplate of the transformer; (viii) If proposed to be interconnected on a center tap neutral of a 240 volt service, its addition shall not create an imbalance between the two sides of the 240 volt service of more than 5 kVA; and (ix) The aggregated nameplate capacity of all generating facilities on any line section does not exceed fifteen percent of the line section annual peak load as most recently measured or calculated for that line section, or fifteen percent of the circuit annual peak load as most recently measured or calculated for the circuit. For the purposes of this subsection: (A) "All generating facilities" means all interconnected generating facilities, the proposed generating facility, and all other proposed generating facilities already in the queue defined in WAC 480-108-030(7); and (B) "Line section" means that portion of an electric system connected to the generating facility and bounded by sectionalizing devices or the end of the distribution line. (b) Tier 2. Interconnection of a generating facility will use Tier 2 processes and technical requirements if the proposed generating facility meets all of the following criteria: (i) It does not qualify for Tier 1 interconnection applicability requirements; (ii) Has a nameplate capacity of 500 kW or less; (iii) Is proposed for interconnection to an electric system distribution facility operated at or below 38 kV class; (iv) Is not a synchronous generator; (v) If it is proposed to be interconnected on a shared secondary, the aggregate generating capacity on the shared secondary, including the proposed generating facility, must not exceed the lesser of the service wire capability or the nameplate of the transformer; (vi) The aggregated nameplate capacity of all generating facilities on any line section does not exceed fifteen percent of the line section annual peak load as most recently measured or calculated for that line section, or fifteen percent of the circuit annual peak load as most recently measured or calculated for the circuit. For the purposes of this subsection: (A) "All generating facilities" means all interconnected generating facilities, the proposed generating facility, and other proposed generating facilities already in the queue defined in WAC 480-108-030(7); and (B) "Line section" means that portion of an electric system connected to the generating facility and bounded by sectionalizing devices or the end of the distribution line; (vii) Any upgrades required to the electric system must fall within the requirements in subsection (2)(b)(ii) of this section; (viii) For interconnection of a proposed generating facility to the load side of spot network protectors, the proposed generating facility must utilize an inverter. The aggregate nameplate capacity of all inverter-based systems must not exceed the smaller of five percent of a spot network's maximum load or 50 kW; (ix) The aggregated nameplate capacity of existing and proposed generating facilities must not contribute more than ten percent to the distribution circuit's maximum fault current at the point on the primary voltage distribution line nearest the point of interconnection; and (x) The generating facility's point of interconnection must not be on a circuit where the available short circuit current, with or without the proposed generating facility, exceeds 87.5 percent of the interrupting capability of the electrical company's protective devices and equipment (including substation breakers, fuse cutouts, and line reclosers). (c) Tier 3. Interconnection of a generating facility will use Tier 3 processes and technical requirements if the proposed generating facility does not qualify for Tier 1 or Tier 2. (2) Technical requirements. (a) Tier 1. (i) The purpose of the protection required for Tier 1 generating facilities is to prevent islanding and to ensure that inverter output is disconnected when the electric system is deenergized. (ii) An interrupting device must be provided which is capable of safely interrupting the maximum available fault current (typically the maximum fault current is that supplied by the electrical company). (iii) The generating facility must operate within the voltage and power factor ranges specified by the electrical company and as allowed by Underwriters Laboratories standard (UL) 1741. (iv) Disconnect switch. Unless the Washington state department of labor and industries requires a visible, lockable AC disconnect switch, an electrical company shall not require a visible, lockable AC disconnect switch for interconnection customers installing and operating an inverter-based UL 1741 certified system interconnected through a self-contained socket-based meter of 320 amps or less. (b) Tier 2. (i) In all cases, the interconnection facilities must isolate the generating facility from the electric system as specified by IEEE 1547, and the interconnection agreement. The interconnection customer shall prevent its generating facility equipment from automatically reenergizing the electric system as specified by IEEE 1547, and the interconnection agreement. For inverter-based systems, the interconnecting facility must comply with IEEE 1547, UL 1741 and the interconnection agreement set forth by the electric utility. For noninverter based systems a separate protection package will be required to meet IEEE 1547 and the interconnection agreement set forth by the electric utility. (ii) If the generating facility fails to meet the characteristics for Tier 2 applicability, but the electrical company determines that the generating facility could be interconnected safely if minor modifications to the transmission or distribution system were made (for example, changing meters, fuses, or relay settings), then the electrical company may offer the interconnection customer a good-faith, nonbinding estimate of the costs of such proposed minor modifications. If the interconnection customer authorizes the electrical company to proceed with the minor modifications and agrees to pay the entire cost of the modifications, then the electrical company may approve the application using Tier 2 processes and technical requirements. (iii) For proposed generating facilities 50 kW and greater, three-phase connection may be required by the electric company. (iv) For three-phase induction generator interconnections, the electrical company may, in its sole discretion, specify that ground fault protection must be provided. Use of ground overvoltage or ground overcurrent elements may be specified, depending on whether the electrical company uses three-wire or effectively grounded four-wire systems. (v) If the generating facility is single-phase and interconnected on a center tap neutral of a 240 volt service, it must not create an imbalance between the two sides of the 240 volt service of more than 5 kW. (vi) If the generating facility is proposed for interconnection at primary (greater than 600 V class) distribution voltages, the connection of the transformer(s) used to connect the generating facility to the electric system must be the electrical company's standard connection. This is intended to limit the potential for creating overvoltages on the electric system for a loss of ground during the operating time of functions designed to prevent islanding. (vii) For primary-voltage connections to three-phase, three-wire systems, the transformer primary windings must be connected phase to phase. (viii) For primary-voltage connections to three-phase, four-wire systems, the transformer primary windings may be connected phase to neutral. (ix) Disconnect switch. (A) Except as provided in (b)(i)(B), (C), and (D) of this subsection, the generating facility must include a visible, lockable AC disconnect switch. The electrical company shall have the right to disconnect the generating facility at a UL listed disconnect switch to meet electrical company operating safety requirements. (B) An electrical company may waive the visible, lockable disconnect switch requirement for an inverter-based system. (C) To maintain electrical company operating and personnel safety in the absence of an external disconnect switch, the interconnection customer shall agree that the electrical company has the right to disconnect electric service through other means if the generating facility must be physically disconnected for any reason, without liability to the electrical company. These actions to disconnect the generating facility (due to an emergency or maintenance or other condition on the electric system) will result in loss of electrical service to the customer's facility or residence for the duration of time that work is actively in progress. The duration of outage may be longer than it would otherwise have been with an AC disconnect switch. (D) In the absence of an external disconnect switch, the interconnection customer is required to operate and maintain the inverter in accordance with the manufacturer's guidelines, and retain documentation of commissioning. In the absence of such documentation the electric company may, with five days' notice and at the interconnection customer's expense, test or cause to be tested the inverter to ensure its continued operation and protection capability. The person that tests the inverter shall provide documentation of the results to both the electrical company and the interconnection customer. Should the inverter fail the test, the electric company may disconnect the generating facility, and require the interconnection customer to repair or replace the inverter. The cost of any such repair or replacement required by the electric company shall be the sole responsibility of the interconnection customer. (c) Tier 3. (i) In all cases, the interconnection facilities must isolate the generating facility from the electric system as specified by IEEE 1547, and the interconnection agreement. The interconnection customer shall prevent its generating facility equipment from automatically reenergizing the electric system as specified by IEEE 1547, and the interconnection agreement. For inverter-based systems, the interconnecting facility must comply with IEEE 1547, UL 1741 and the interconnection agreement set forth by the electric utility. For noninverter based systems a separate protection package will be required to meet IEEE 1547 and the interconnection agreement set forth by the electric utility. (ii) The system must be designed to prevent a single point of failure from causing a loss of protective functions. This can be achieved by installing multiple discrete-function relays providing the required functions as a set, or by installing redundant multifunction devices, each of which provides all of the required functions. (iii) Ground fault protection must be provided, unless waived by the utility in writing. Use of ground overvoltage or ground overcurrent elements may be specified, depending on whether the utility uses three-wire or effectively grounded four-wire systems. (iv) Breaker failure detection must be provided, and secondary action initiated in the event that the interconnection breaker fails to clear for the trip condition, consistent with utility practice. This may require installation of dual generator breakers tripped by similar interconnection relays, or a main and backup relay with the same functions and zones of protection, one of which trips the generator breaker and one which trips the main incoming breaker. (v) System impact studies. The electrical company may require a feasibility, system impact, facilities, or other study as described in WAC 480-108-030 (10)(c). These studies are intended to quantify the impacts of the generating facility on the electric system, and may include an analysis of power flow, stability, metering, relay/protection, and communications/telemetry. Acceptance of the results of these studies by the interconnection customer is a condition of approval of the application because the studies provide the basis for the detailed technical requirements for interconnection.
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-030 Application for interconnection.
(1) Standard application. (a) The electrical company must file a standard application form ((of application)) with the commission((, which the)) that potential interconnection customers ((seeking to interconnect a generating facility)) must use to request interconnection under ((Part 1 of)) this chapter ((must fill out and submit to the electrical company along with)). The interconnection customer's request must include the application fee established ((according to)) in subsection (((4))) (5) of this section. The electrical company must make the standard application form available on its web site and, unless unreasonably burdensome, allow for submission via the internet. (b) Notification of potential voltage irregularities. Application materials shall include a notice explaining that voltage may be routinely at the upper limits of the range described in WAC 480-100-373, and this may limit the ability of a generating facility to export power to the electric system. (2) Point of contact and information disclosure. The electrical company ((will)) must designate a point of contact and publish a telephone number and((/or)) web site address for the ((unique)) purpose of assisting potential interconnection customers. The electrical company must comply with reasonable requests for information including relevant system studies, interconnection studies, and other materials useful for ((an)) a potential interconnection customer to understand the circumstances of an interconnection at a particular point on the ((electrical company's)) electric system, to the extent provision of such information does not violate confidentiality provisions of prior electrical company agreements. (3) ((Prior to submitting its interconnection request,)) When a potential interconnection customer ((may ask)) requests interconnection from the electrical company ((whether and how)), the ((proposed)) potential interconnection ((is subject to this chapter. The)) customer must conform to the rules and regulations in effect and on file with the electrical company ((must respond within fifteen business days)). The potential interconnection customer seeking to interconnect a generating facility under this chapter must fill out and submit, electronically or otherwise, a signed application form to the electrical company. Information on the form must be accurate and complete. (4) Phased installation. When a project is designed for phased installation, the potential interconnection customer may choose to submit an application for approval of the final project size, or may choose to submit applications at each phase of the project. Each application will be evaluated based on the nameplate capacity stated on the application. If separate applications are submitted for each phase of a project, a separate application fee is required for each phase of the project. (a) If the potential interconnection customer applies with a final phased in project size and the electrical company approves the application, then the potential interconnection customer must notify the electrical company as additional units are added. (b) If a potential interconnection customer submits an application for an individual phase of a project, the potential interconnection customer may not develop the project beyond the size approved. (((4))) (5) Application fees. The electrical company must establish a nonrefundable interconnection application fee set according to facility size to be paid by the interconnection customer to the electrical company when the interconnection customer submits its application. If an application is withdrawn, the application fee shall be applied to a request for reapplication submitted within thirty business days of the withdrawal. The fee, intended to cover the costs of processing the application, will be no greater than: (a) One hundred dollars for facilities 0 to 25 kilowatts (kW); ((and)) (b) Five hundred dollars for facilities 26 to ((300)) 500 kW((.)); and (((5) Interconnection application.)) (c) One thousand dollars for facilities 500 kW to 20 MW. (6) Nondiscriminatory processing and evaluation. All generating facility interconnection applications will be processed and evaluated by the electrical company in a nondiscriminatory manner, consistent with other service requests and in a manner that does not delay other service requests. The electrical company must ((stamp all interconnection requests to)) document the date and time that all interconnection applications are received. ((The original)) (7) Timelines. The timeline for the application review process begins when the interconnection application and application fee are received. A project enters the queue on the date ((and time stamp affixed)) that the electrical company sends a notice of complete application to the interconnection ((request will serve)) customer, as ((the beginning point for purposes of)) described in this section. An electrical company may send any ((timetables in the application and review process)) notice described in this section by electronic mail. (((6) Application evaluation. Upon)) (8) Tier 1 applications. (a) Tier 1 standard application. Deviations from standard business practices described in this subsection are not violations of this rule. The electrical company's standard business practice for Tier 1 interconnection applications, shall: (i) Offer a single application for interconnection, net metering and production metering; and (ii) Include, in the same package as the notice of approval, an executable interconnection agreement and if applicable: (A) The dollar amount due to complete the interconnection including the cost of the production meter; (B) An executable net metering agreement; (C) Notice of the steps the interconnection customer must take to receive any renewable energy production incentive payments administered by the electrical company; (D) Any other information likely to expedite the remainder of the interconnection process. (b) Tier 1 application timeline. (i) Notice of receipt. Notice of receipt of an ((interconnection)) application((,)) and application fee shall be sent by the electrical company ((must)) to the interconnection customer within five business days. (ii) Notice of complete application. (A) The electrical company shall notify the interconnection customer ((within ten business days)) if the application is complete or incomplete, and if incomplete specifying any deficiencies, within ten business days after the notice of receipt of application. (B) When an electrical company sends a notice of an incomplete application to an interconnection customer, the interconnection customer shall provide a complete application to the electrical company within fifteen business days of the notice. The electrical company may, but is not required to, grant an extension in writing. If the interconnection customer fails to complete the application, the application expires at the end of the incomplete application period. (iii) Approval or denial. Within twenty business days after a complete application notice is sent to an interconnection customer, the electrical company shall approve, approve with conditions, or deny the application with written justification. The electrical company shall include, in the same package as the notice of approval, an executable interconnection agreement and any other information likely to expedite the remainder of the interconnection process. If delays result from unforeseen circumstances, customer variance requests, or other incentive program approval requirements, the customer shall be promptly notified. (iv) Initial operation. An interconnection customer must interconnect and operate the generating facility within one year from the date of approval of the application, or the application expires, unless the electrical company, in its sole discretion, grants an extension in writing. (9) Tier 2 application timeline. (a) Notice of receipt. Notice of receipt of an application and application fee shall be sent by the electrical company to the interconnection customer within five business days. (b) Notice of complete application. (i) The electrical company shall notify the interconnection customer if the application is complete or incomplete, and if incomplete specifying any deficiencies, within ten business days after notice of receipt of application. (ii) When an electrical company sends a notice of an incomplete application to an interconnection customer, the interconnection customer shall provide a complete application to the electrical company within fifteen business days of the notice. The electrical company may, but is not required to, grant an extension in writing. If the interconnection customer fails to complete the application, the application expires at the end of the incomplete application period. (c) Approval or denial. Within thirty business days after a complete application notice is sent to an interconnection customer, the electrical company shall approve, approve with conditions, or deny the application with written justification. If delays result due to unforeseen circumstances, customer variance requests, or incentive program approval requirements, the interconnection customer shall be promptly notified. (d) Offer of agreement. The electrical company must offer the interconnection customer an executable interconnection agreement within five business days of the notification of approval described in (c) of this subsection. (e) Initial operation. An interconnection customer must interconnect and operate the generating facility within one year from the date of approval of the application, or the application expires, unless the electrical company, in its sole discretion, grants an extension in writing. (10) Tier 3 application timeline. (a) Notice of receipt. Notice of receipt of an application and application fee shall be sent by the electrical company to the interconnection customer within five business days. (b) Notice of complete application. (i) The electrical company shall notify the interconnection customer if the application is complete or incomplete, and if incomplete specifying any deficiencies, within ten business days after notice of receipt of application. (ii) When an electrical company sends a notice of an incomplete application to an interconnection customer, the interconnection customer shall provide a complete application to the electrical company within thirty business days of the notice. The electrical company may, but is not required to, grant an extension in writing. If the interconnection customer fails to complete the application, the application expires at the end of the incomplete application period. (c) Technical review and additional studies. (i) Technical review. Once an application is accepted by the electrical company as complete, the electrical company will review the application to determine if the interconnection request complies with the technical standards established in WAC 480-108-020 and to determine whether ((the interconnection request is complete. If the application is not complete, the electrical company must provide a written list detailing all additional information)) any additional engineering, safety, reliability or other studies are required. If the electrical company determines that additional studies are required, the electrical company must provide the interconnection customer a form of agreement that includes a description of what studies are required and a good faith estimate of the cost and time necessary to ((complete the application. The interconnection customer must supply the)) perform the studies. The electrical company must notify the interconnection customer of the result of these determinations within thirty business days of when the application is deemed complete, as described in subsection (b) of this section. The interconnection customer may request that studies be combined. (ii) Approval with no additional studies. If the electrical company notifies the interconnection customer that the request complies with the technical requirements established in WAC 480-108-020 and no additional studies are required to determine the feasibility of the interconnection, the electrical company must offer the interconnection customer an executable interconnection agreement within five business days of such notification. The electrical company also will provide any additional interim agreements, such as construction agreements, that may be necessary ((information or request an extension of)) and a good faith estimate of the cost and time ((within ten business days. If the interconnection customer does not provide within ten business days the listed information)) necessary to complete the ((application or request an extension of time, the electrical company may reject the application)) interconnection. (iii) Cost of additional studies and upgrades. (A) Cost allocation. The interconnection customer is responsible for all reasonable costs incurred by the electrical company to study the proposed interconnection and to design and construct any required interconnection facilities or system upgrades. The interconnection customer is responsible for reasonable ongoing operation and maintenance costs for facilities added to the electric system that are dedicated to that interconnection customer's use. (B) Cost disputes. Within thirty business days after receiving a notice that additional studies are required, as described in (c)(i) of this subsection, the interconnection customer may supply an alternative cost estimate from a third-party qualified to perform the studies required by the electrical company. (C) Study agreement and deposit. After the electrical company and the interconnection customer agree on the estimated cost of the required studies and the identity of parties to perform the required studies, the interconnection customer and electrical company must execute an agreement describing these studies and any deposit to be paid to the electrical company. The deposit is not to exceed the lower of one thousand dollars, or fifty percent of the estimated study cost. After a study agreement is executed, the electrical company shall make its best effort to complete the required studies, consistent with time requirements for the studies and other service requests of a similar magnitude. (iv) Denial after additional studies. The electrical company will provide the interconnection customer with the results of the studies conducted under this subsection. If the studies determine that the interconnection is not feasible, the electrical company will provide notice of denial to the interconnection customer and the reasons for the denial. (v) Modification after additional studies. Based on the results of the studies, the electrical company and interconnection customer may agree to modify the previously complete application without penalty to the interconnection customer. A modified application shall be considered an approved final application. (vi) Approval after additional studies. If the studies determine that the interconnection is feasible, the electrical company will notify the interconnection customer and provide an executable interconnection agreement to the interconnection customer within five business days of such notification if no system upgrades are required, or fifteen business days if system upgrades are required. The electrical company also will provide any additional interim agreements, such as construction agreements, that may be necessary and a good faith estimate of the cost and time necessary to complete the interconnection. (vii) An interconnection customer's failure to execute and return completed agreements and required deposits within the time frames specified in this section or by the electrical company may result in termination of the application process by the electrical company under terms and conditions stated in such agreements. (d) Other than modifications to the complete application described in (c)(v) of this subsection, changes by the interconnection customer to a previously approved completed application will be considered a new application and shall be accompanied by a new application fee. Denied applications expire on the date of denial. (e) An interconnection customer must execute an interconnection agreement, and simultaneously pay any deposit required by the electrical company not to exceed fifty percent of the estimated costs to complete the interconnection, within thirty business days from the date of approval of the final application. At the electrical company's discretion, an extension may be granted in writing. If the electrical company must upgrade or construct new electric system facilities, the interconnection customer must meet the credit requirements of the electric company prior to the start of construction. (f) Initial operation. An interconnection customer must begin operation of the generating facility within two years of the effective date of the interconnection agreement, or both the application and subsequent interconnection agreement expire. At the electrical company's discretion, an extension may be granted in writing.
PART 2: GENERAL TERMS AND CONDITIONS FOR INTERCONNECTIONS
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-040 General terms and conditions of interconnection.
(1) The ((general)) terms ((and)), conditions ((listed)), and technical requirements in this section ((shall)) apply to ((all interconnections of customer-owned generating facilities with nameplate capacity less than or equal to 300 kW to an)) the interconnection customer and generating facility throughout the generating facility's installation, testing, commissioning, operation, maintenance, decommissioning and removal. The electrical ((company's)) company may verify compliance at any time, with reasonable notice. (2) Any generating facility proposing to be interconnected with the electric system ((under Part 1 of)) or any proposed change to a generating facility that requires modification of an existing interconnection agreement must meet all applicable terms, conditions, and technical requirements set forth in this chapter, including the regulations and standards adopted by reference in WAC 480-108-999. (((1) Any)) (3) The terms, conditions and technical requirements in this section are intended to mitigate possible adverse impacts caused by the generating facility on electrical ((generating facility with a maximum nameplate capacity rating)) company equipment and personnel and on other customers of the electrical company. They are not intended to address protection of ((300 kW)) the generating facility itself, generating facility personnel, or ((less must)) its internal load. It is the responsibility of the generating facility to comply with ((these rules to be)) the requirements of all appropriate standards, codes, statutes and authorities to protect its own facilities, personnel, and loads. (4) The interconnection customer shall comply with and must ensure its generating facility meets the requirements in (a), (b), and (c) of this subsection. However, at its sole discretion, the electrical company may approve, in writing, alternatives that satisfy the intent of, or waive compliance with, any specific elements of these requirements except local, state and federal building codes. (a) Codes and standards. These include the National Electric Code (NEC), National Electric Safety Code (NESC), the Institute of Electrical and Electronics Engineers (IEEE), American National Standards Institute (ANSI), and Underwriters Laboratories (UL) standards, and local, state and federal building codes. The interconnection customer shall be responsible for obtaining all applicable permit(s) for the equipment installations on its property. (b) Safety. All safety and operating procedures for joint use equipment shall be in compliance with the Occupational Safety and Health Administration (OSHA) standard at 29 C.F.R. 1910.269, the NEC, Washington Administrative Code (WAC) rules, the Washington division of occupational safety and health (DOSH) standard, and equipment manufacturer's safety and operating manuals. (c) Power quality. Installations will be in compliance with all applicable standards including IEEE standard 519 Harmonic Limits, or more stringent harmonic requirements of the electrical company that have been approved by the commission. (5) Any electrical generating facility must comply with this chapter to be eligible to interconnect and operate in parallel with the ((electrical company's)) electric system. ((The rules under this chapter)) These specifications and standards shall apply to all ((interconnection customer-owned)) interconnecting generating facilities that are intended to operate in parallel with ((an electrical company's)) the electric system ((irrespective)) regardless of whether the interconnection customer intends to generate energy to serve all or a part of the interconnection customer's load; or to sell the output to the electrical company or any third party purchaser. (((2))) (6) In order to ensure system safety and reliability of interconnected operations, all interconnected generating facilities ((must)) shall be constructed ((and)), operated and maintained by the interconnection customer in accordance with ((this chapter)) these rules, with the interconnection agreement, with the applicable manufacturer's recommended maintenance schedule and operating requirements, good electric company practice, and all other applicable federal, state, and local laws and regulations. (((3) Prior to initial operation, all interconnection customers must submit a completed certificate of completion to the electrical company, execute an appropriate interconnection agreement and any other agreement(s) required for the disposition of the generating facility's electric power output as described in WAC 480-108-040(15). The interconnection agreement between the electrical company and the interconnection customer outlines the interconnection standards, cost allocation and billing agreements, and on-going maintenance and operation requirements. (4) The)) (7) This section does not govern the settlement, purchase, sale, transmission or delivery of any power generated by interconnection customer's generating facility. The purchase, sale or delivery of power, including net metered electricity pursuant to chapter 80.60 RCW, and other services that the interconnection customer may require will be covered by separate agreement or pursuant to the terms, conditions and rates as may be from time to time approved by the commission. Separate agreements may be required with the electrical company, the balancing area authority or transmission provider, or other party but not necessarily with the electrical company. Any such agreement shall be complete prior to initial operation. (8) An interconnection customer shall promptly furnish the electrical company with copies of such plans, specifications, records, and other information relating to the generating facility or the ownership, operation, use, ((electrical company access to,)) or maintenance of the generating facility, as may be reasonably requested by the electrical company from time to time. (((5))) (9) Disconnection. (a) Electrical company's right to disconnect. (i) An electrical company may disconnect a generating facility as described in this subsection. The electrical company shall provide reasonable advance notice to an interconnection customer before any scheduled disconnection, or reasonable notice after an unscheduled disconnection. (ii) Unapproved interconnection. For the purposes of public and working personnel safety, ((the electrical company may)) any unapproved generating facility will be immediately ((disconnect)) disconnected from the ((electrical company)) electric system ((any nonapproved generation)). Such disconnection of unapproved interconnections may result in disconnection of electric service to customers of the electrical company other than the owner of the generating facility. (iii) Unapproved operation. If a generating facility does not operate in a manner consistent with this chapter or an approved tariff, the electrical company may disconnect the generating facility. (iv) Temporary disconnection. To maintain electrical company operating and personnel safety the electrical company has the right to temporarily disconnect electric service to the interconnection customer if the generating facility must be physically disconnected for any reason. The disconnection of the generating facility (due to an emergency or maintenance or other condition on the electric system) will result in loss of electrical service to the customer's facility or residence for the duration of time that work is actively in progress. If no disconnect switch is present, the duration of such an outage may be longer than it would be with the switch. (b) Interconnection customer's right to disconnect. The interconnection customer may disconnect the generating facility at any time, provided that the interconnection customer provides reasonable advance notice to the electrical company. (((6))) (10) To ensure reliable service to all electrical company customers and to minimize possible problems for other customers, the electrical company ((will)) may review the need for upgrades to its system, including a dedicated ((to-single-customer distribution)) transformer. If the electrical company ((requires a dedicated distribution transformer)) notifies the interconnection customer that upgrades are required before or at the time of application approval, the interconnection customer ((must)) shall pay for all ((reasonable)) costs of ((the new transformer and related facilities in accordance)) those upgrades, except where inconsistent with ((subsection (13) of this section)) these rules. (((7))) (11) The electrical company may require, and if it so requires will provide its reasoning in writing, a transfer trip system or an equivalent protective function for a generating facility, that cannot: Detect distribution system faults (both line-to-line and line-to-ground) and clear such faults within time and operating parameters found in IEEE 1547 Tables 1 and 2; or detect the formation of an unintended island and cease to energize the electric system within two seconds. (12) Metering. (a) Net metering ((for solar, wind, hydropower fuel cells and facilities that simultaneously produce electricity and useful thermal energy as set forth in chapter 80.60 RCW. The electrical company will)). The electrical company shall install, own, and maintain a kilowatt-hour meter((,)) or meters ((as the installation may determine,)) capable of registering the bi-directional flow of electricity at the point of common coupling ((at a level of accuracy that meets)). The meters shall meet or exceed all applicable accuracy standards((, regulations and statutes)). The meter(((s))) may measure ((such)) parameters ((as)) including the time of delivery, power factor, and voltage ((and such other parameters as the electrical company specifies)). The interconnection customer ((must)) shall provide space for metering equipment. The interconnection customer must provide the current transformer enclosure (if required), meter socket(s) and junction box after the electrical company approves the interconnection ((customer has submitted)) customer's drawings and equipment specifications ((for electrical company approval. The electrical company may approve other generating sources for net metering but is not required to do so)). (b) Production metering((:)). The electrical company may require separate metering((, including, if necessary for safety or reliability, metering capable of being remotely accessed,)) for production. This meter will record all generation produced and may be billed separately from any net metering or customer usage metering. All costs associated with the installation of production metering will be paid by the interconnection customer. (((8) Common)) (13) Labeling. The interconnection customer must post common labeling, furnished or approved by the electrical company and in accordance with NEC requirements ((must be posted)), on the meter base, disconnects, and transformers informing working personnel that ((generation)) a generating facility is operating at or is located on the premises. (((9) As currently set forth for qualifying generation under chapter 80.60 RCW (net metering), no)) (14) Insurance. No additional insurance ((will be)) is necessary for ((interconnections that qualify for net metering. For generation other than qualifying generation under chapter 80.60 RCW, additional insurance, limitations of liability and indemnification may be required by the)) a generating facility with a nameplate capacity under 100 kW. (15) Future modification. An interconnection customer must obtain electrical company((. (10) The electrical company must review and approve)) approval before any future modification or expansion of ((an interconnected)) a generating facility. The electrical company may require the interconnection customer, at the interconnection customer's expense, to provide ((and pay for)) corrections or additions to existing ((interconnection facilities if)) electrical devices in the event of modification of government or industry regulations and standards ((are modified. The)), or major changes in the electric ((company must notify the interconnection customer in writing of any such requirement. The electrical company may terminate interconnection service if)) system which impacts the interconnection ((customer does not within thirty business days of the date of the notice arrange with the electrical company a mutually agreed schedule to comply with such requirements)). (((11) For the overall safety and protection of the electrical company system,)) (16) Chapter 80.60 RCW limits ((interconnection of generation for net metering to .25 percent of the electrical company's peak demand during 1996 and, beginning in 2014, to .50 percent of the electrical company's peak demand during 1996. Additionally, interconnection of generating facilities for net metering to individual distribution feeders is limited to 10 percent of the feeder's peak capacity. The electrical company also)) the total capacity of generation for net metering. However, the electrical company may restrict or prohibit new or expanded ((interconnected generation capacity)) net metered systems on any feeder, circuit or network if engineering, safety, or reliability studies establish ((a)) the need for a restriction or prohibition. (((12) The interconnection customer is responsible for protecting its facilities, loads and equipment and complying with the requirements of all appropriate standards, codes, statutes and authorities. (13))) (17) Cost allocation. Charges by the electrical company to the interconnection customer in addition to the application fee, if any, ((must be cost-based and consistent with generally accepted engineering practices)) will be compensatory and applied as appropriate. Such ((charges)) costs may include, but are not limited to, ((the cost of engineering studies; the cost of)) transformers, production meters, and electrical company testing((; the cost of)), qualification, studies and approval of non-UL 1741 listed equipment((; the cost of interconnection facilities, and the cost of any required system upgrades. Unless an electrical company demonstrates by reference to its integrated resource plan prepared pursuant to WAC 480-100-238, its conservation targets pursuant to RCW 19.285.040, its studies performed under WAC 480-108-065, or other evidence that an interconnection will provide quantifiable benefits to the electrical company's other customers, electrical company charges to the interconnection customer will include all costs made necessary by the requested interconnection service. If an electrical company demonstrates that an interconnection will produce quantifiable benefits for the electrical company's other customers, it may incur a portion of these costs for commission consideration for recovery in its general rates commensurate with such benefits. If after consideration of any costs approved by the commission for recovery in general rates the remaining costs are less than any amounts paid by the interconnection customer, the electrical company must refund the excess amount to the interconnection customer. (14))). The interconnection customer ((is)) shall be responsible for any costs associated with any future upgrade((s)) or modification to its ((generating facility or interconnection facilities made necessary)) interconnected system required by modifications ((the electrical company makes to its)) in the electric system. (((15) This section does not govern the settlement, purchase or delivery of any power generated by the interconnection customer's generating facility. The purchase or delivery of power, including net metering of electricity pursuant to chapter 80.60 RCW, power purchases and sales to PURPA qualifying facilities pursuant to chapter 480-107 WAC, and other services that the interconnection customer may require will be covered by separate agreement or pursuant to the terms, conditions and rates as may be from time to time approved by the commission. Any such agreement shall be completed)) (18) Sale and assignment. The interconnection customer shall notify the electrical company prior to ((initial operation and filed with the commission. (16) The interconnection customer may disconnect the generating facility at any time after providing reasonable advance notice to the electrical company. (17) The electrical company must require an interconnection customer to provide notice of)) the sale or transfer of the ((interconnection customer's)) generating facility, the interconnection facilities or the premises upon which the ((interconnection)) facilities are located. ((To continue)) The interconnection ((service)) customer shall not assign its rights or obligations under any agreement entered into pursuant to ((a new owner,)) these rules without the prior written consent of electrical company ((must require the new owner to execute a new interconnection agreement)); such consent shall not be unreasonably withheld. (19) If the interconnection customer is a different entity than the owner of the real property on which the generating facility is located, the interconnection customer shall indemnify the electrical company for all risks to the owner of the real property, including disconnection of service. In addition, the interconnection customer shall obtain all legal rights and easements requested by the electrical company for the electrical company to access, install, own, maintain, operate or remove its equipment and the disconnect switch, if installed, on the real property where the generating facility is located, at no cost to the electrical company. (20) Inverters. If an inverter is utilized, the inverter must be certified by an independent, nationally recognized testing laboratory to meet the requirements of UL 1741. Inverters certified to meet the requirements of UL 1741 must use undervoltage, overvoltage, and over/under frequency elements to detect loss of electrical company power and initiate shutdown.
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-050 ((Certificate of)) Completion of interconnection process.
((Interconnection customers must obtain an electrical permit and pass electrical inspection for all generating and interconnection facilities before they can be connected or operated in parallel with the electrical company's electric system. The electrical company must receive written certification from the interconnection customer that the generating facility has been installed and inspected in compliance with the local building and/or electrical codes. The electrical company must review and approve in writing the certificate of completion, before the interconnection customer's generating facility may be operated in parallel with the electrical company's electric system. The electrical company shall not unreasonably withhold such approval, but shall have the right to inspect and test the interconnection facilities in accordance with IEEE 1547.1 prior to parallel operation.)) The interconnection process is complete and the generating facility can begin operation when: (1) The interconnection customer and the electric company execute an interconnection agreement; (2) The interconnection customer provides, and the electrical company issues written approval for, a certificate of completion demonstrating: (a) The receipt of any required electrical and building permits, and installation in compliance with electrical and local building codes; (b) Installation in compliance with the technical requirements for interconnection in this chapter; (c) Inspection and approval of the system by the electrical inspector having jurisdiction over the installation. (3) All required agreements with the balancing area authority having jurisdiction, and all agreements covering the purchase, sale or transport of electricity and provision of any ancillary services have been completed and signed by all parties; (4) Witness test. If required by the electrical company, a representative of the electrical company witnesses and approves the operation of the generating facility in accordance with the requirements of this chapter; and (5) All requirements and conditions of the interconnection agreement have been satisfied and permission granted by the electrical company to proceed with commercial operation.
((PART 2: INTERCONNECTION OF GENERATION FACILITIES WITH NAMEPLATE CAPACITY RATING GREATER THAN 300 KW BUT NO MORE THAN 20 MW))
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-080 Interconnection service tariffs.
(1) ((No later than January 31, 2008)) Within sixty business days of the effective date of this rule, each electrical company over which the commission has jurisdiction must file an interconnection service tariff for ((facilities with nameplate generating capacity greater than 300 kW but no more than 20 MW)) interconnections consistent with this chapter. (2) Interconnection service ((tariffs must)) includes only the terms and conditions that govern physical interconnection to the electrical company's delivery system and does not include sale or transmission of power by the interconnecting customer or retail service to the interconnecting customer. (3) Tier 3 tariff requirements. Tariffs that govern the interconnection of Tier 3 generating facilities under this chapter must either: (a) Offer service equivalent in all procedural and technical respects to the interconnection service the electrical company offers under the small generator interconnection provisions of its open access transmission tariff as approved by the Federal Energy Regulatory Commission (FERC); or (b) Comply with the terms of an "alternative interconnection service tariff" described in subsection (5) of this section. (4) FERC Small Generator Interconnection Agreements. (((3))) For purposes of ((Part 2 of)) this ((chapter)) section, "small generator interconnection provisions" means the procedural and technical requirements established by the FERC in Standardization of Small Generator Interconnection Agreements and Procedures, Order No. 2006, 70 FR ((34100)) 34190 (June 13, 2005), FERC Stats. & Regs. ¶ 31,180 (2005) (Order No. 2006), order on reh'g, Order No. 2006-A, 70 FR 71760 (Nov. 30, 2005), FERC Stats. & Regs. ¶ 31,196 (2005), order on clarif'n, Order No. 2006-B, 71 FR 42587 (July 27, 2006), FERC Stats. & Regs. ¶ 61,046 (2006). "Small generator interconnection provisions" does not include the 10 kW inverter process required under the above-listed FERC regulations. (((4) Interconnection service includes only the terms and conditions that govern physical interconnection to the electrical company's delivery system and does not include sale or transmission of power by the interconnecting customer or retail service to the interconnecting customer.)) (5) Tier 3 alternative interconnection service tariff. If an electrical company demonstrates that the small generator interconnection provisions will impair service adequacy, reliability or safety or will otherwise be incompatible with its electric system, the electrical company may file a Tier 3 alternative interconnection service tariff. An alternative interconnection service tariff must meet the following requirements and be consistent with all provisions of this chapter: (a) All interconnection customers must be treated equally without undue discrimination or preference. (b) Electric companies must ensure that interconnection service will not impair safe, adequate and reliable electric service to its retail electric customers. (c) Technical requirements for all interconnections must comply with IEEE, NESC, NEC, North American Electric Reliability Corporation, Western Electricity Coordinating Council and other applicable safety and reliability standards. (d) Charges by the electrical company to the interconnection customer in addition to the application fee, if any, must be cost-based and consistent with generally accepted engineering practices. Unless an electrical company demonstrates by reference to its integrated resource plan prepared pursuant to WAC 480-100-238, its conservation targets pursuant to RCW 19.285.040, the studies it performs under WAC 480-108-120, or other evidence that an interconnection will provide quantifiable benefits to the electrical company's other customers, an interconnecting customer must pay all costs made necessary by the requested interconnection service. Such costs include, but are not limited to, the cost of engineering studies, upgrades to the electric system made necessary by the interconnection, metering and insurance. If an electrical company demonstrates that an interconnection will produce quantifiable benefits for the electrical company's other customers, it may incur a portion of these costs for commission consideration for recovery in its general rates commensurate with such benefits. If after consideration of any costs approved by the commission for recovery in general rates the remaining costs are less than any amounts paid by the interconnection customer, the electrical company must refund the excess to the interconnection customer. (e) Interconnection customers must be responsible for all operation, maintenance and code compliance for facilities and equipment on the customer's side of the point of common coupling. (f) Interconnection service tariffs must describe: (i) The process, timelines and cost of feasibility and facility impact studies the electrical company may require before allowing interconnection. (ii) The prioritization or other processes by which the electrical company will manage multiple requests for interconnection service. (g) Interconnection service tariffs must state: (i) Specific time frames for electrical companies to respond to interconnection applications. (ii) Specific time frames for interconnection customers to respond to study and interconnection agreements offered by the electrical company. Time frames must be adequate for the electrical company and the interconnection customer to have adequate opportunity to examine engineering studies and project design options. (h) The electrical company must make knowledgeable personnel available to answer questions regarding applicability of the interconnection service tariff and otherwise provide assistance to a customer seeking interconnection service. The electrical company must comply with reasonable requests for information including relevant system studies, interconnection studies, and other materials useful for an interconnection customer to understand the circumstances of an interconnection at a particular point on the electric system, to the extent provision of such information does not violate confidentiality provisions of prior electrical company agreements.
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-110 Required filings—Exceptions.
(1) The electrical company must file for commission approval, as part of its tariff, and maintain on file for inspection at its place of business, the charges, terms and conditions for interconnections pursuant to ((Part 2 of)) this chapter. Such filing must include model forms of the following documents and contracts: (a) Application; (b) Feasibility Study Agreement; (c) System Impact Study Agreement; (d) Facilities Study Agreement; (e) Construction Agreement; (f) Interconnection Agreement; and (g) Certificate of Completion. (2) The commission may grant such exceptions to these rules as may be appropriate in individual cases.
AMENDATORY SECTION (Amending WSR 07-20-059, filed 9/27/07, effective 10/28/07)
WAC 480-108-120 Cumulative effects of interconnections ((with a nameplate capacity rating greater than 300 kW but no more than 20 MW)).
Electrical companies will evaluate on an ongoing basis, but not less than once every five years, the cumulative effect, including benefits to its other customers, of interconnections made under ((Part 2 of)) this chapter on its electric system and will retain appropriate records of its evaluations.
AMENDATORY SECTION (Amending WSR 13-05-023, filed 2/11/13, effective 3/14/13)
WAC 480-108-999 Adoption by reference.
In this chapter, the commission adopts by reference all or portions of regulations and standards identified below. They are available for inspection at the commission branch of the Washington state library or as otherwise indicated. The publications, effective date, references within this chapter, and availability of the resources are as follows: (1) The National Electrical Code is published by the National Fire Protection Association (NFPA). (a) The commission adopts the edition published on January 24, 2012. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) The National Electrical Code is a copyrighted document. Copies are available from the NFPA at 1 Batterymarch Park, Quincy, Massachusetts, 02169 or at internet address http://www.nfpa.org/. (2) National Electrical Safety Code (NESC). (a) The commission adopts the 2012 edition. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) Copies of the National Electrical Safety Code are available from the Institute of Electrical and Electronics Engineers at http://standards.ieee.org/nesc. (3) Institute of Electrical and Electronics Engineers (IEEE) Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems. (a) The commission adopts the version published in 2003 and reaffirmed in 2008. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) Copies of IEEE Standard 1547 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home. (4) American National Standards Institute (ANSI) Standard C37.90, IEEE Standard for Relays and Relay Systems Associated with Electric Power Apparatus. (a) The commission adopts the version published in 2005. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) Copies of IEEE Standard C37.90 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home. (5) Institute of Electrical and Electronics Engineers (IEEE) Standard 519, Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems. (a) The commission adopts the version published in 2004. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) Copies of IEEE Standard 519 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home. (6) Institute of Electrical and Electronics Engineers (IEEE) Standard 141, Recommended Practice for Electric Power Distribution for Industrial Plants. (a) The commission adopts the version published in 1994 and reaffirmed in 1999. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) Copies of IEEE Standard 141 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home. (7) Institute of Electrical and Electronics Engineers (IEEE) Standard 142, Recommended Practice for Grounding of Industrial and Commercial Power Systems. (a) The commission adopts the version published in 2007. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) Copies of IEEE Standard 142 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home. (8) Underwriters Laboratories (UL), including UL Standard 1741, Inverters, Converters, Controllers and Interconnection Systems Equipment for Use with Distributed Energy Resources. (a) The commission adopts the version published in 2010. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) UL Standard 1741 is available from Underwriters Laboratory at http://www.ul.com. (9) Occupational Safety and Health Administration (OSHA) Standard at 29 C.F.R. 1910.269. (a) The commission adopts the version published in 1994. (b) This publication is referenced in WAC ((480-108-020)) 480-108-040. (c) Copies of Title 29 Code of Federal Regulations are available from the U.S. Government Online Bookstore, http://bookstore.gpo.gov/, and from various third-party vendors. (((10) Washington Industrial Safety and Health Administration (WISHA) Standard, chapter 296-155 WAC. (a) The commission adopts the version in effect on April 17, 2012. (b) This publication is referenced in WAC 480-108-020. (c) The WISHA Standard is available from the Washington Department of Labor and Industries at P.O. Box 44000, Olympia, WA 98504-4000, or at internet address http://www.lni.wa.gov/.))
REPEALER
The following sections of the Washington Administrative Code are repealed:
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